Tip of The Week April 14, 2010
By David Miller
Actionable Tip of the Week
A recurring question we are asked by many advisors is: “How do I tell prospective
clients about what my ‘minimum’ is?
This may sound like a rather straightforward question that deserves a straightforward answer, and it is. So consider two distinctive ways of answering this and the ramifications of each.
The way most people would respond is:
“For me to work with a client, the minimum assets I require are $500,000.” At this point, the advisor may then feel obligated to provide an explanation and they add something like; “or it simply is just not worth it to me.”
Regardless of whether or not they add the explanation, it is implied.
So whose needs is the advisor addressing? Is he talking to the client about their needs or is he talking to the client about his own needs? What images is he conjuring up and what is the greater message that he is sending? What the advisor is really saying is—It is all about me all the time and this is my primary concern.
We teach advisors that there are three primary people in anyone’s life — me, myself and I. So when a client hears an explanation like this, how do you think they react inside? What questions are they thinking about? In other words, “Will this guy put my concerns first in the relationship and can I trust him?” You have raised doubt in their minds. Is this ever a good thing when it relates to trust?
What’s the alternative?
Try using this phraseology instead:
“I have a number of criteria that I use to determine whether or not a potential client is a good fit for me, and one of those things, and it’s not the only thing, is assets.”
The solutions and services I provide to my clients are best suited for families / households with more than $500,000 in investable assets.”
In the first statement, you are setting yourself apart from everyone else your client has ever discussed this topic with. You are expressing thoughtfulness and care by being concerned that there is a fit between you and the potential client. You have also stated that you have a number of criteria to determine fit between you and the potential client, and investable assets is just one of those criteria.
So whose concerns have we addressed with the second statement? We have dealt with this subject of investable assets in a very straightforward manner, and at the same time we have made a bold statement about where our loyalties lie. With this approach, you are saying that if you took clients with less than your minimum, it would really be doing them a disservice, as the solutions and services you provide would not meet their needs. You are expressing integrity, honesty and trustworthiness. You are not raising any doubts and the client feels honored and privileged to work with someone who is concerned about, and who puts his clients first.
The next time you are asked the question about minimums, or in the event that you need to ask the question yourself, give this a try, and notice how people respond. They will have a new level of respect for you as an advisor.
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